17 Dec 2003
RE GUANGDONG INVESTMENT LTD
- Citation
- RE GUANGDONG INVESTMENT LTD
- Court
- Court of First Instance
- Case number
- HCMP4867/2003
The court confirmed the reduction because the statutory tests were satisfied: shareholders (including preference shareholders) were equitably treated and properly informed; the reduction had a clear discernible purpose (to eliminate accumulated losses and expedite dividends); and creditors were adequately protected by a cap-limited special reserve addressing non-permanent losses and by a separate trust account funded with HK$34,000,000 for non-consenting creditors, such safeguards permitting the court to dispense with settling a formal creditor list under the Companies Ordinance.